KLA (KLAC) closed the latest trading day at $694.61, indicating a +0.75% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.05%, while the tech-heavy Nasdaq added 1.26%.
Prior to today's trading, shares of the maker of equipment for manufacturing semiconductors had lost 1.51% over the past month. This has was narrower than the Computer and Technology sector's loss of 6.23% and the S&P 500's loss of 4.77% in that time.
The upcoming earnings release of KLA will be of great interest to investors. The company's earnings report is expected on April 30, 2025. The company's earnings per share (EPS) are projected to be $8.06, reflecting a 53.23% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3.01 billion, indicating a 27.36% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $31.59 per share and revenue of $11.91 billion, which would represent changes of +33.07% and +21.38%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for KLA. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. KLA is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that KLA has a Forward P/E ratio of 21.83 right now. This denotes a premium relative to the industry's average Forward P/E of 17.39.
We can additionally observe that KLAC currently boasts a PEG ratio of 1.4. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Electronics - Miscellaneous Products was holding an average PEG ratio of 1.67 at yesterday's closing price.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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KLA Corporation (KLAC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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